Since 2017, the United Nations General Assembly has celebrated Micro, Small, and Medium-sized Enterprises (MSMEs) both locally and internationally. These businesses are so important to our local and global economy because they contribute a whopping 50% of the world’s gross domestic product. Their significant and incredible impact on the entire market value of all goods and services produced worldwide is so impactful that they deserve a day of recognition and celebration. We celebrate MSME Day this Thursday, June 27, to acknowledge their part in improving our world and empowering and encouraging more people to become entrepreneurs.
While these businesses are considered small, they are indeed mighty. According to the United Nations’ website, MSMEs account for 90% of the world’s businesses and 60 to 70% of employment. They are not just the backbone of our local, national, and international economies. They are the backbones of our communities, too. These businesses are more than just part of our communities; they are part of our everyday lives in ways we probably never noticed. That’s why MSME Day is so important and why we are honored to highlight all they do to stimulate our economy and provide jobs to us and our communities.
Being an entrepreneur is not easy. It’s difficult for a variety of reasons: the absence of a product-market fit, poor marketing strategy formulation and implementation, and cash flow problems are the main culprits as to why small businesses fail, which can be as many as 20% within the first two years. The resilience and creativity of MSMEs are evident in their ability to innovate despite facing challenges. They play a crucial role in our business landscape by contributing to poverty reduction and decreased inequality. Additionally, they create employment opportunities for marginalized groups, including youth, women, and low-skilled workers. Without MSMEs, our world and its people would be significantly impacted.
So, how can we support these local and small businesses? Here are three ways to give back to them in exchange for all they have done and continue to do to improve our lives.
Shop Local
The best way to celebrate MSME Day is to support local small businesses. Supporting local businesses means giving back to your community and helping to strengthen it in the process. When we shop locally and support small businesses, it has a domino effect. Your dollars contribute to paying the employees, who are usually your fellow community members, and support your local farmers, artisans, and other folks producing the goods and services unique to your area. By supporting local businesses, we help create jobs and enhance our neighborhoods. Supporting small businesses is a big deal.
Support Female and Minority-Owned Businesses
40% of businesses in the United States are owned by women, while 19.9% of businesses are minority-owned. Business ownership is no easy feat, and it’s even more challenging for women and minorities. That’s why MSME Day exists and why it’s so important to seek out businesses owned by women and minorities to show your support and sustain their presence in the business world. They want to be there; they deserve to be there. To keep them around, we have to support them with our patronage.
Tell a Friend
One of the challenges that small businesses face is marketing. It costs money to let their target audiences know about the existence and quality of the products or services they offer, and achieving the same reach as larger, established businesses costs even more. That’s why it’s crucial to help spread the word about them. If you have a positive experience with a small business, tell a friend or share it on your social media. Similarly, if your experience differs from what you expected, provide constructive feedback so they can improve. Supporting small businesses through word-of-mouth marketing is a way to give back and contribute to the success of your community and the local, national, and international economy. Word-of-mouth marketing accounts for $6 trillion in annual global consumer spending, resulting in 5 times more sales than advertisements they paid for. So, do your part and spread the word.
We celebrate and congratulate MSMEs because we understand what it means to be a small business. The entrepreneurial spirit guides Credico. It lives within us and is the fuel that has driven us for more than thirty years. This day is our day, too. We are grateful for our success and support and encourage other entrepreneurs because their success is our success and impacts us all.